John Paulson Makes Macau Investment in MGM China Hong Kong IPO (MGM)

John Paulson is making an investment of $75 million in the initial public offering of MGM Resorts International's MGM MGM China casino operation. The venture, which is co-owed by MGM Resorts and Hong Kong businesswoman Pansy Ho, has received just shy of $200 million from four large investors - including Paulson. Naturally, dealmaker Kirk Kerkorian is investing $50 million through his private holding company, Trancinda Corp. Macau is a gaming and tourist attraction in China that generates nearly four times the annual revenue of Las Vegas. Wynn Resorts WYNN has announced its push to double down in Macau. "It will result in us controlling one of the finest – and certainly the fastest-growing assets – in our portfolio post-IPO when we own 51 percent of MGM China. It also strengthens our bond with Pansy Ho, which we like, and we're doing more with her in China and as part of this deal she's investing a significant amount of her money into MGM Resorts," MGM Resorts International Chairman and CEO Jim Murren said of the deal on May 4. MGM Resorts said MGM Macau's first quarter operating income of $126 million was a record, and up 158% year-over-year. According to a Reuters report, "Pansy Ho, daughter of Stanley Ho -- dubbed Macau's casino king for his pervasive influence over the Macau gaming sector -- will sell down her 50 percent existing stake to 29 percent in MGM China. MGM Resorts will hold 51 percent while the rest will be sold to the public." As of December, the 587-room MGM Macau had, in terms of revenue, about an 11.4% market share among the 33 casinos at the time in Macau, the company said.